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 July 25, 2013
Will the real Martin Wolf please stand up?
Slow Boat Out of China 
 
Martin Wolf, chief economics columnist for the Financial Times, wrote an article earlier this month in which he concluded that the West has no need to worry that China will buy its way into global leadership in key industries through foreign acquisitions -- at least for now.

Having just returned from China -- where he met with executives of Chinese IT Services firms -- our own Martin Wolf has firsthand knowledge that this conclusion is true for the Chinese IT industry.

Marty Wolf is interviewed by Angela Song of the Dalian Financial & Economic Channel
That's because the IT Services industry in China is just gathering steam, and currently lags behind the global leaders, which for the most part can be found in the United States and India. Compared with IT giants such as IBM Global Services, HP and Accenture in the United States -- and Tata Consultancy Services, Infosys and WiPro in India -- Chinese IT Services leaders are relatively small with a tiny global market share. Plus, the biggest buyers of IT Services are in North America and Western Europe -- regions where companies are more inclined to use and trust U.S. and Indian providers.

 

However, China does have a major advantage over Indian IT companies: a potentially huge domestic market for outsourcing. No such market exists in India. And as domestic demand grows, it could catapult Chinese companies into a phase of rapid growth in both size and sophistication -- essential to be able to compete on the global stage.

 

What must Chinese IT Services companies do to prepare themselves for that day? 

 
To read our Martin Wolf's view of the opportunities Chinese IT Services companies have in the short term -- that will make them more globally competitive in the long term -- check out his article published yesterday in Yahoo! Finance. 

About martinwolf    

 

     San Ramon Office          
             San Francisco, CA                                                Bangalore, India

With offices in San Francisco and Bangalore, India, martinwolf is a leading middle market M&A Advisory focused on companies with services-based business models. Since 1997, our team has completed more than 115 transactions in six countries. We are a five-year member of the Merrill Lynch PS Referral Network, and were selected as ICICI Bank's (India's leading private bank) exclusive strategic partner for acquiring U.S. IT companies. martinwolf is a member of FINRA and SIPC. For more information, visit www.martinwolf.com.

 

To learn more about martinwolf, contact Matthew Putzulu at mputzulu@martinwolf.com.

 

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In the space of a decade, China and India have emerged as dramatic, dynamic competitors.

 

Peter Mandelson

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